Why is a desk tax audit carried out? How a desk audit of tax returns is carried out. Fixed the bug before it was found
In accordance with Art. Art. 82, 87 and art. 88 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation), a desk tax audit is a form of documentary control over compliance by a taxpayer, fee payer or tax agent with tax legislation, which is carried out at the location of the tax authority.
The procedure for carrying out desk tax audits is regulated by Art. 88 Tax Code of the Russian Federation.
According to paragraph 1 of the above article of the Tax Code of the Russian Federation, the subject of a desk tax audit is tax returns (calculations) and documents submitted by the taxpayer, as well as other documents on the activities of the taxpayer available to the tax authority.
A desk tax audit is carried out by authorized officials of the tax authority in accordance with their official duties without any special decision of the head of the tax authority within three months from the date the taxpayer submits a tax return (calculation) (clause 2 of Article 88 of the Tax Code of the Russian Federation).
At the same time, the Tax Code of the Russian Federation does not provide for the extension of this period or suspension of a desk inspection, unlike an on-site inspection. As a general rule, a tax audit is carried out at the location of the tax authority with which the taxpayer (fee payer, tax agent) is registered. Tax authorities are not obliged to inform the taxpayer about the start of a desk audit.
Taxpayers will learn about its implementation if during the audit the following is discovered:
- errors in the tax return (calculation) and (or) contradictions between the information contained in the submitted documents;
- discrepancies were identified between the information presented and the information contained in the documents available to the tax authority and received by it during tax control.
In addition, it should be noted that the tax authority itself decides to conduct a desk audit. However, in two cases specified in the Tax Code of the Russian Federation, this type of inspection is mandatory:
- provision by the taxpayer of a value added tax declaration (clause 1 of Article 176 of the Tax Code of the Russian Federation);
- provision by the taxpayer of an excise tax declaration (clause 4 of Article 203 of the Tax Code of the Russian Federation).
- requesting documents from the taxpayer (in cases provided for in Article 93 of the Tax Code of the Russian Federation);
- requesting documents and information from counterparties and other persons (Article 93.1 of the Tax Code of the Russian Federation);
- interrogation of witnesses (Article 90 of the Tax Code of the Russian Federation);
- carrying out an examination (Article 95 of the Tax Code of the Russian Federation);
- participation of a translator and expert (Articles 95, 97 of the Tax Code of the Russian Federation);
- inspection of documents and items (with the consent of the taxpayer, as opposed to an on-site inspection) (Articles 91, 92 of the Tax Code of the Russian Federation).
APPEAL BY TAXPAYER
The taxpayer has the right to file objections to the desk audit report within 1 month. Within 10 working days after the deadline for submitting objections, the head of the tax authority is obliged to consider the audit materials, objections of the taxpayer, and make a decision on bringing or refusing to bring to justice for committing a tax offense.
The article will discuss in detail what a desk audit is, what goals it pursues, and the main features, timing and location of its conduct will be determined. Special attention will be paid to processing and appealing the results of the inspection.
Desk tax control
Desk audit - what is it? Before answering this question, it is necessary to say a few words in general about audits carried out by tax authorities.
Being an effective means, they allow us to achieve uniformity in the application of legal norms in the field of taxation, compliance and strict adherence to these norms. There are two types of checks:
- Cameral (KNP).
- Travel (GNP).
KNI is more effective compared to on-site, as it allows you to cover a larger number of taxpayers due to its specifics.
Desk audit - what is it? What goals does it pursue and what principles is it guided by? More on this below.
The conduct of the inspection is regulated by the norms of the Tax Code of the Russian Federation, Methodological recommendations for its conduct and approved forms of documents for this inspection.
Objectives of the KNP
The main goals to be achieved by the desk audit are:
- Monitoring the correct application of tax law.
- Detection and suppression of tax violations.
- Checking the legality of the declared benefits and deductions reflected in the tax return.
The right to conduct a desk tax audit falls within the competence of the tax authorities of the Russian Federation.
Principles that define the essence of KNI
The principles of a desk audit are essentially the features of its purpose and conduct.
- Subject of inspection: the subject of the KNI are the documents submitted by the taxpayer, as well as documents at the disposal of the inspectorate.
- Place of inspection: KNI, unlike GNP, is carried out at the tax office, and not at the person being audited.
- Persons conducting the inspection: as stated above, the inspection is entrusted to officials vested with special powers. No special permission is required to conduct an inspection.
- Time period covered by the audit: the period specified in the declaration.
Timing of desk inspection
KNI is maintained within 90 days from the date of submission of the declaration or calculation to the inspectorate. In practice, it may be difficult to determine the start date of the audit.
For example, according to the Tax Code of the Russian Federation, the date of submission of the declaration by mail is considered to be the date indicated on the postage stamp. Accordingly, if the letter is lost in the mail and takes more than 3 months, then it turns out that the verification period will have expired by the time it reaches the inspectorate?
The Federal Tax Service made it clear in its letter, according to which the inspection cannot begin until the inspection (tax) authority receives the declaration. Thus, the date of submission will be considered the date on the postmark of the letter, and the start date of the audit will be the date of receipt of this declaration by the tax authority.
Receiving documents within the framework of the KNP
Request for information within the framework of the KNI is carried out in the following cases:
- If, during the audit, errors, inconsistencies and discrepancies are discovered between the data contained in the submitted declaration with the data in supporting documents or information available to the tax authority, the desk audit department has the right to demand clarifications from the taxpayer or correct inaccuracies in the submitted declaration.
- If the tax payable in the tax submitted to the inspection is less than in the primary tax, the inspector has the right to demand explanations and documents justifying the legality of such a reduction.
- Similar explanations will also have to be provided if a loss is declared in the declaration. Only in this case will they relate to the validity of the claim for this loss.
- Additionally, you will also need to confirm the tax benefits declared in the declaration.
- When refunding VAT, the inspector may request documents that confirm the legality of the deduction claim.
The tax authority has no right to request other documents.
Having established the principles and goals that guide the desk audit, what it gives the taxpayer and what features of the audit follow from this, we will analyze the main stages and directions of conducting this type of tax control, as well as the features of processing and appealing the audit results.
Stages of conducting KNI
Conventionally, we can distinguish several stages of conducting KNI:
Directions for conducting KNI
When conducting an inspection, the office department:
- Compares the indicators of the submitted declaration with the data of the declaration for the same tax for the past period.
- Analyzes the indicators of the submitted declaration and indicators of declarations for other taxes.
- General analysis of the data contained in the tax return.
Desk check. Documents documenting its results
If circumstances of violation of the legislation on taxes and fees are detected, expressed in understatement of expenses, unreasonably claimed deduction or loss, failure to submit a declaration on time and other violations, the inspector draws up an Inspection Report.
The act must be drawn up within ten working days and signed by the inspectors and directly by the person in respect of whom the inspection was carried out.
The KNP act must include the following information:
- Date and number of the act.
- Initials and titles of the persons conducting the inspection.
- Name of the person being inspected (full and abbreviated).
- The day of submission of the declaration to the inspection.
- declarations.
- Start and end day of the inspection.
- List of control measures carried out.
- Identified tax violation events.
- The results of the inspection, the assigned measure of responsibility and proposals for eliminating violations.
Within 5 days, the desk audit report is handed over to the taxpayer in person or in another way.
If it is not possible to hand over the act in person or the taxpayer avoids receiving it, the tax authority sends the act by mail.
According to the general rule enshrined in the Tax Code, the date of receipt of the audit report by the taxpayer should be considered the 6th day from the date the report was sent by mail. But in this case, in practice, misunderstandings often occur due to the fact that a person receives an act much later than the specified period, and therefore is deprived of the right to present his objections to the act. Therefore, the correct day should be considered the day the taxpayer received the act, which is confirmed by Russian postal data.
After 10 days after receiving the report, a desk audit on VAT, personal income tax and any other tax, or rather, documents received during its implementation, are subject to consideration by the head (deputy head) of the inspection.
The inspection person is obliged to notify the person being inspected when the materials received during the inspection will be reviewed.
The absence of a person notified of the date and place of the inspection cannot be a reason for postponing the date of consideration of the inspection and, in this case, is carried out without him.
If inspectors need to obtain additional information or study newly discovered circumstances, the head of the inspection may decide to carry out additional tax control measures. The duration of these activities should not exceed one calendar month.
After reviewing the inspection materials, a decision is made to prosecute or refuse to prosecute.
So, we have identified the stages and directions, the design features of this type of control, such as a desk audit. What is an appeal against an inspection report and how it happens, we will consider further.
Appealing the results of desk tax control
If a person does not agree with the conclusions reflected in the act, he can send his objections to the inspectorate as a whole to the entire act or to its individual provisions.
Objections must be submitted in writing no later than one calendar month from the date of receipt of the act.
The taxpayer's objections are considered within 30 calendar days from the date the latter received the audit report, and after their consideration a decision is made.
The decision of the tax authority comes into force one month after it is received by the taxpayer, unless it is appealed.
A person who does not agree with the decision made has the right to file an appeal against it within a month, which must be considered by a higher authority within 30 days.
The decision made by this authority comes into force from the date of its signing and can only be appealed in court.
Taking into account the above, we can conclude that the question of what a desk audit is is fully covered.
A desk audit is carried out in relation to reports and documents that the taxpayer himself submits to the Federal Tax Service, or that are available to the inspectorate. Let’s take a closer look at what a “desk audit” means and what the procedure for conducting it is.
Department of desk audits in the tax service
Each tax office has a department that deals with desk audits. There may be several such departments, then each has its own direction, for example, desk audits of legal entities, verification of personal income tax declarations, verification of income tax declarations, etc.
Desk tax audits are carried out by authorized officials - tax inspectors, whose main function is to monitor compliance with tax legislation on the basis of reports submitted by taxpayers. “Clerks”, unlike employees of the field inspection department, do not go to the taxpayer, but check all documents on the spot - at the Federal Tax Service.
The main responsibilities of the tax inspector of the desk audit department are as follows:
- acceptance of tax returns, calculations, reports, balance sheets and other documents related to the calculation and payment of taxes and insurance contributions,
- conducting desk audits of received reports and documents,
- conducting counter audits, if necessary - sending requests to other tax inspectorates to conduct such audits,
- consideration of issues of refund of overpayments on taxes, insurance contributions and other payments to the budget,
- collecting evidence on violations of tax laws by taxpayers, preparing materials for applying sanctions to violators, including suspending transactions on bank accounts due to failure to submit tax reports.
In general, we can highlight the following main tasks of the desk tax audit conducted by the department:
- checking received reports,
- based on the results of the audit - selection of taxpayers for an in-depth “camera examination”,
- selection of taxpayers for whom it is possible to schedule an on-site tax audit.
Stages of desk tax audit
Article 88 of the Tax Code of the Russian Federation establishes the procedure for conducting desk audits of taxpayers. “Cameralka” is carried out on any report received by the Federal Tax Service, and this does not require a special decision from the head of the inspection. The taxpayer is not notified of the start of the audit.
A desk tax audit is carried out in several stages:
- data on the submitted reports are entered into the automated system of the Federal Tax Service;
- reconciliation is carried out, the indicators of the reporting period are compared with the same indicators of previous periods, and compared with the indicators reflected in other declarations and reports;
- compliance with the deadlines established for the submission of certain reports is checked;
- the reasons and grounds for an in-depth inspection are identified;
- if no violations are identified and there are no grounds for an in-depth inspection, then the “camera room” ends automatically, without drawing up a report. The taxpayer is not notified of the completion of the audit.
If there are contradictions or errors in reporting, as well as when applying for benefits, VAT refunds, reporting taxes on the use of natural resources, etc., an in-depth check is carried out. What does a desk tax audit mean at this stage? This means that the taxpayer will be notified of the violations committed by him, in connection with which he will be asked for clarification and, possibly, it will be necessary to make changes to the declaration and submit a “clarification” (clause 3 of Article 88 of the Tax Code of the Russian Federation).
The taxpayer is given no more than 5 working days from the date of receipt of the request from the Federal Tax Service to fulfill these requirements. When submitting an updated declaration, after its acceptance, the period for the desk audit begins anew.
An in-depth desk audit is the basis for carrying out such tax control procedures as: counter audits, examination, interrogation of witnesses, request or seizure of documents, etc.
The inspector conducting the camera examination is obliged to consider all explanations and documents submitted by the taxpayer in his justification. It is unacceptable to request documents and information that are not related to the reports being audited or that are not provided for by tax legislation. If the fact of a tax violation is nevertheless established, a desk audit report is drawn up (clause 5, clause 7 of Article 88 of the Tax Code of the Russian Federation).
On some regional websites of the Federal Tax Service you can more clearly familiarize yourself with the desk tax audit scheme (for example, on the website of the Federal Tax Service of the Russian Federation for the Altai Republic).
Timing of desk inspection
A desk tax audit is carried out at the location of the tax office within 3 months from the day the taxpayer submitted the reports, if the inspectors have no comments on the reports.
If violations are detected in the submitted reports, Art. 88 of the Tax Code of the Russian Federation, in addition to the 3 months during which the desk audit is carried out, provides for the following terms:
- 10 working days – to draw up a desk inspection report;
- 5 working days from the date of drawing up the act are given for its delivery to the taxpayer;
- 1 month – the period during which the taxpayer can submit his objections to the audit report;
- another 10 working days are given to the head of the Federal Tax Service to consider the materials of the “office room” and the taxpayer’s objections. On their basis, he makes a decision to hold or refuse to hold the taxpayer accountable for a tax offense. In special cases, if additional tax control measures are required, the period may be extended by another 1 month.
After submitting the reports, a desk audit of each submitted declaration or calculation begins automatically. Read the article about what tax authorities reveal in practice when checking reports and what the consequences of these errors are.
How is the check carried out?
A desk tax audit is a check of compliance with legislation on taxes and fees on the basis of a tax return and documents that the taxpayer independently submitted to the tax office, as well as documents that the tax authority has. This check is regulated by Art. 88 Tax Code of the Russian Federation. The start date of the audit is the date the taxpayer submits a declaration, calculation or information to the tax office.
Without exception, all declarations and calculations received from taxpayers are checked. Taxpayers are not notified of the start of a desk audit, and no decision is made on its appointment.
Check period
The period for conducting a desk audit is 3 months. If during the audit, errors or inconsistencies in information are revealed, the taxpayer is sent a request asking for documents, explanations of the facts of violations identified and an updated declaration or calculation.
The taxpayer is given 5 days to provide explanations and clarifications. If during this period the taxpayer does not independently correct errors or does not provide the required explanations, he will be fined.
From January 1, 2017, the fine for this violation is 5 thousand rubles; if a similar violation is repeated within a calendar year, the fine will be 20 thousand rubles.
Explanations related to VAT declarations are provided only in electronic form, through an electronic document management operator, in the format approved by Order of the Federal Tax Service of the Russian Federation dated December 16, 2016 No. ММВ-7-15/682@. Explanations provided on paper are considered not provided.
Registration of inspection results
After the end of the desk audit, a report is drawn up indicating the violations found and the amounts of additional taxes assessed. Within 5 working days, the inspection report is handed over to the taxpayer.
Within a month, the taxpayer has the right to submit disagreements to the desk audit report.
Within 10 working days after the expiration of the period for submitting disagreements, the head of the inspectorate makes a decision to hold the taxpayer accountable for committing a tax offense.
If the taxpayer does not agree with this decision, he has the right to send an appeal to a higher tax authority. This complaint is considered within a month from the date of filing. The consideration period may be extended, of which a notification is sent to the taxpayer.
If the taxpayer does not agree with the decision of a higher tax authority, he has the right to go to court.
If no violations are identified during a desk audit, it is automatically closed, the taxpayer is not notified about this, and documents for the audit are not handed over to him.
Errors when submitting reports
Disagreements between the tax inspectorate and taxpayers often arise during the reporting process. If declarations and calculations are filled out incorrectly, the reporting verification program automatically refuses to accept them, indicating errors.
What are these errors:
1. The reporting is signed by a representative with a power of attorney, but the tax inspectorate’s database does not contain either the power of attorney itself or data on the representative.
2. The reporting is signed by a representative under a power of attorney, but the information message about the power of attorney indicates a power of attorney without the right to sign.
3. The declaration is signed by the head of the organization. But his data in the declaration does not coincide with the information in the Unified State Register of Legal Entities.
4. The primary declaration is submitted with the attribute “corrective” or vice versa.
5. Reporting is submitted using outdated and ineffective forms.
Violations due to desk audits
When conducting a desk audit of specific declarations and/or calculations, the entire taxpayer’s reporting for that period is analyzed. The data specified in the general reporting is compared with the audited one. It is during this analysis that most violations are revealed. Data from external sources, information received from taxpayers' counterparties, and previous desk audits are analyzed.
Various violations are established:
1) simple arithmetic errors;
2) discrepancy between the tax base of VAT and income tax;
3) discrepancies between 6-NDFL and RSV data;
4) violation of the procedure for recovering VAT on advance payments paid;
5) provision of an incomplete set of documents when refunding VAT from the budget or for losses;
6) understatement of revenue;
7) overestimation of expenses;
8) for UTII and PSN, there is a discrepancy between the physical indicator of the number of employees and the data of 6-NDFL and DAM;
9) lack of documents confirming tax benefits;
10) calculations of property tax without taking into account the cadastral value of the property.
These are the most common violations that are detected during desk tax audits. It is impossible to describe them all. But, as statistics show, 90 percent of violations and errors are made by taxpayers due to their carelessness. This is explained by both the heavy workload of accountants and the lack of experience. But we must also understand that this inattention can be costly for the organization. Therefore, very carefully check that all reporting forms are filled out correctly, do not delay submission until the last day, compare report data, and prepare packages of documents on losses and VAT refunds in advance.
From the third quarter of 2017, desk tax audits of your reporting will use another source of information about income - information from online cash registers. Do not forget to reflect this information in full and without errors in the reporting, so that you do not have to provide explanations and documents for inspections and pay penalties.
The requirement to provide explanations for reporting is not a reason for a fine
If tax authorities discover errors, inaccuracies, or contradictions in the submitted reports, they have the right to demand that the taxpayer provide explanations. The latter has 5 days to do this or submit an adjusted report to the inspectorate.
If an error in reporting led to an underpayment of tax to the budget, the tax authorities will impose a fine. However, the violation is confirmed only by a tax audit report.
Thus, if, before making a decision on the “camera chamber”, the company manages to submit corrected reports to the Federal Tax Service, and also transfers the underpaid amount of tax and penalties to the budget, then a fine can be avoided.
Editor's note:
It is worth adding that senior judges consider the fine in the case under consideration to be lawful. According to the Supreme Court of the Russian Federation, if the taxpayer eliminates the violations after the tax authorities send him a request to provide explanations for the reporting, then he cannot avoid liability for underpayment of tax (definitions dated March 27, 2017 No. 305-KG17-1782, dated October 10, 2016 No. 305- KG16-12560).
In what form should explanations for declarations and calculations be provided?
If, during a desk audit, tax officials find errors or inconsistencies in the submitted reports, they have the right to request clarification from the taxpayer. The person being inspected has 5 days to provide explanations or correct previously submitted forms.
If inaccuracies are found by inspectors in the declaration of profit, property or transport, as well as personal income tax reporting, then explanations can be submitted in any form (on paper or according to the TKS). But if the tax office is dissatisfied with the VAT return, then you need to communicate with the Federal Tax Service exclusively in virtual form according to the format established by the Federal Tax Service of the Russian Federation. Otherwise, explanations will be considered not provided and a fine will follow.
Let us recall that the central office of the Federal Tax Service of the Russian Federation, in its decision on a taxpayer’s complaint, argued that the local Federal Tax Service Inspectorate must accept VAT explanations in any electronic form, but they do not necessarily have to comply with the format.
How to send VAT explanations if you have multiple addresses
Companies (IPs) submitting electronic VAT returns submit to the Federal Tax Service, upon its request, explanations in the same form and according to the format determined by the Federal Tax Service of the Russian Federation (Order No. ММВ-7-15/682@ dated December 16, 2016).
This responsibility has appeared since the beginning of 2017.
Submitting paper explanations is the same as not submitting them at all.
At the same time, the law allows companies to use the services of several e-document flow operators, so a company may have more than one email address.
When generating a response with explanations, the company can itself indicate the declaration identifier displayed in the acceptance receipt (notification of entering the VAT report).
It is also not forbidden to inform the tax authorities about the address to which correspondence via TKS should be sent.
How to provide explanations to the declaration: the Federal Tax Service answers
Question | Answer |
If, upon receipt of a request for clarification, the taxpayer has reconciled invoices with the counterparty and no violations have been established, is it necessary to respond to the request? | It is necessary to provide explanations to the tax authority confirming that the invoice is reflected in the tax return section |
If a taxpayer receives a request to provide explanations indicating invoices, which, in his opinion, are reflected correctly in the declaration, what should he do in this case? | If possible, carry out a reconciliation with the counterparty to ensure that the identification indicators of invoices are correctly reflected in the declaration of the buyer and seller and inform the Federal Tax Service that there is no error |
If the taxpayer sends clarifications on the TKS in response to a request, will the taxpayer be notified that the tax authority has received these clarifications? | Explanations are considered accepted by the tax authority if the taxpayer has received a notification of acceptance signed with the electronic signature of the inspectorate. Otherwise, the taxpayer will receive a notice of refusal to accept |
If the explanations provided do not eliminate the identified discrepancies, will the inspectorate inform taxpayers about this, or will a new request for explanations be issued again? | If, after the taxpayer provides explanations, the discrepancies are not eliminated, the Federal Tax Service has the right to send a request for the presentation of documents or carry out other tax control measures |
Will the tax authority inform the taxpayer if the explanations provided eliminate the identified discrepancies? | No, the Tax Code of the Russian Federation does not provide for the obligation of tax authorities to inform the taxpayer about the elimination of discrepancies |
Is it necessary to attach documents to a response to a request for clarification? | The taxpayer has the right to additionally submit to the inspection copies of documents confirming the accuracy of the data included in the tax return |
Can the deadline for providing explanations be extended? | The Tax Code does not provide for an extension of the deadline for submitting explanations |
Is it possible to refuse to accept clarifications in response to a request for clarification? | Only in case of violation of the electronic format of the response to the request for clarification |
Is it possible to provide explanations along with filing an updated VAT return? | The Tax Code does not prohibit the submission of explanations along with the submission of an updated tax return |
In what cases is only an explanation submitted in response to a request for explanations, and in what cases is an amended tax return submitted? | If an error is identified in the submitted VAT return that leads to an underestimation of the amount of tax payable, the organization is obliged to submit an updated return. If an error in the declaration led to an overpayment or did not affect the amount of tax payable, then it is not necessary to submit an “adjustment”. In such cases, an explanation may be provided |
What is the deadline for providing explanations in response to a request? | Explanations must be submitted within 5 days from the date of transmission of the acceptance receipt via TKS to the tax authority |
Is it necessary to send a receipt for the request for clarification? What is the deadline for sending a receipt for acceptance of this request? | Yes. Upon receipt of a request for clarification, the taxpayer is obliged to submit to the Federal Tax Service a receipt for acceptance of such a document in electronic form via TKS within 6 days from the date the tax authority sent the request |
The “clarification” submitted on the day of the inspection does not affect its results
On the last day of the audit, the organization filed an adjusted VAT return for the controlled period.
The inspectors did not reflect the fact that the “clarification” had been submitted in their decision.
The Federal Tax Service of the Russian Federation, having considered the taxpayer’s complaint, indicated the following: the “clarification” was sent at the time between drawing up the inspection report and issuing a decision on it.
The Tax Code of the Russian Federation does not provide for the development of such events.
Therefore, tax authorities independently determine the rules for considering the updated declaration:
- carrying out additional verification;
- "camera room";
- return visit to the organization.
Considering that the “clarification” reflected the amount accrued based on the results of the control, and the fact that it was not paid to the budget, the Federal Tax Service of the Russian Federation recognized the inspectors’ decision as fair.
You can submit a “clarification” of profit even if the transaction is declared invalid
In 2015, the bank made a real estate sale transaction, which the court later declared invalid. In this regard, the credit institution filed an updated profit declaration for this period.
The Federal Tax Service expressed disagreement with the submitted declaration. However, due to the recognition of the transaction as invalid in accordance with clause 2 of Art. 167 of the Civil Code of the Russian Federation, the bank was obliged to reimburse the buyer for everything he paid. Consequently, the bank lost profit from the transaction.
The bank submitted a “clarification” on profits, since in accordance with Art. 81 of the Tax Code, a taxpayer has the right to submit corrected reporting if he made mistakes in the declaration that led to an overpayment of tax to the budget.
According to the Federal Tax Service of the Russian Federation, in this case the bank acted lawfully.
There should not be a fine for unformalized explanations of VAT returns
Desk audit of VAT payment has its own characteristics. Most companies submit electronic reporting for this tax.
As stated in paragraph 3 of Art. 33 of the Tax Code of the Russian Federation, explanations to the virtual declaration requested by the inspection must be sent only in electronic form via TKS in the approved format. Explanations on paper are not considered provided.
If the explanations or an updated declaration requested during the camera meeting are not submitted within 5 days, then a fine will follow under Art. 129.1 of the Tax Code of the Russian Federation in the amount of 5 thousand rubles, for a repeated offense in the same calendar year it will increase to 20 thousand rubles.
Recently, a higher tax authority considered a dispute regarding the payment of a 5,000 fine in favor of the company.
In March, she received a request to provide explanations for the VAT return for the third quarter of last year. The explanations were sent to the inspection on time according to the TKS, but in a regular letter, to which the primary documents were attached.
Tax officials considered the explanations not provided, since the company did not comply with the letter format approved by Order of the Federal Tax Service of the Russian Federation dated December 16, 2016 No. ММВ-7-15/682@. For this she was fined 5 thousand rubles.
The higher tax authority overturned the inspector's decision. Since Article 88 of the Tax Code of the Russian Federation does not provide any indication that non-formalized electronic explanations are not considered submitted.
And the article. 129.1 of the Code punishes only for their failure to submit, and not for violation of the electronic format.
Therefore, a company that sent explanations to the Federal Tax Service via a simple letter under the TKS cannot be held liable under Art. 129.1 Tax Code of the Russian Federation.
Decision of the Central Office of the Federal Tax Service of the Russian Federation dated September 13, 2017 No. SA-4-9/18214@.
Editor's note:
This decision will help organizations that find themselves in similar situations to avoid fines without going to court. It is enough to refer to it when the need arises.
Let us remind you that the requirement to provide explanations for the VAT return will be sent if tax authorities identify contradictions or inconsistencies between the information contained in the declaration of the taxpayer and his counterparty or in the journal of received and issued invoices. The request is accompanied by a list of transactions for which discrepancies have been identified.
The algorithm for filling out the explanations depends on the fact that there are errors in the declaration that led to an understatement of tax.
If such an error has crept in, you must submit a “clarification” (clause 1 of Article 81 of the Tax Code of the Russian Federation). Whether or not to attach explanations revealing the reason for the inaccuracies is up to the organization itself, since the Tax Code of the Russian Federation does not prohibit this option for presenting documents.
If the company is confident that the reporting is completed correctly, then this must be conveyed to the controllers in the explanations. For example, reveal the reason for the discrepancies between the “profitable” base and the VAT base (there could be transactions exempt from VAT) or the reason for the discrepancy between the purchase book data and the sales book of the counterparty (after reconciliation with it). If necessary, copies of primary documents can be attached to the explanations.
Inaccuracies found in the report that did not affect the calculation of tax or did not underestimate its payment do not lead to the need to submit an “adjustment”. This should be reflected in the explanations.
However, the last rule does not always work. A different procedure for clarifying calculations has been established for tax agents; details are in the next review.
The procedure for submitting “clarifications” is different if the tax is paid by a tax agent
Financiers recalled the special provision of paragraph 6 of Art. 81 of the Tax Code of the Russian Federation, which obliges tax agents, including VAT, to submit updated calculations in the following cases:
- the submitted reports do not reflect (incompletely reflect) any data;
- in case of overstatement or understatement of tax liabilities.
The Ministry of Finance of the Russian Federation clarified that the updated declaration must contain all those sections that were filled out in the primary reporting, even if there are no errors in them.
When compiling a “clarification”, corrections are made to previously completed sections. In this case, new sections are filled in, for example, section 2 “Amount of tax to be paid to the budget, according to the tax agent,” if it was not filled out by mistake in the initial declaration.
Sections that do not require corrections remain unchanged.
Letter of the Federal Tax Service of the Russian Federation dated January 11, 2017 No. AS-4-15/200.
Editor's note:
Thus, for tax agents it does not matter whether the payment is overestimated or underestimated; someone else’s tax must be recalculated in any case.
If the tax agent company detects distortions specified in the letter, the declaration must be clarified.
This also applies to calculations using Form 6-NDFL.
For example, if a March error was noticed at the end of the year after the calculations were submitted based on the results of 9 months, then three “clarifications” will have to be submitted: for the first quarter, half a year and 9 months. After all, section 1 of the form is filled out with a cumulative total, and such an error appears in all calculations submitted for the reporting periods (letter of the Federal Tax Service of the Russian Federation dated July 21, 2017 No. BS-4-11/14329@).
Distortions in calculations result in a fine of 500 rubles.
A five-day period for filing an updated declaration is established by the Tax Code of the Russian Federation only when issuing a tax demand (to clarify or clarify inconsistencies). In other cases, no deadline is specified. But it is better to submit it early, so that a mistake in underestimating the amount to be paid does not lead to a fine of 20 percent of the arrears (Article 122 of the Tax Code of the Russian Federation). After all, tax officials can be the first to find it, then punishment cannot be avoided.
Before submitting the “clarification”, you must pay the arrears and penalties (clause 4 of Article 81 of the Tax Code of the Russian Federation).
Explanations will be requested for the loss declaration to explain the amount of the loss.
If a loss is declared in a “profitable” declaration, then the tax authorities will not let such reporting pass and will demand an explanation of the reason for the lack of profit.
This happened with the company, which declared a loss of 285 thousand rubles in the first quarter of last year.
The Federal Tax Service issued a requirement dated May 26, 2016, in which it indicated the need to clarify the situation or make corrections to the declaration within 5 days.
The company considered this requirement illegal and tried to appeal the actions of the inspectors first in pre-trial proceedings. But the Moscow region Federal Tax Service only confirmed the competence of the inspectors.
I had to go to court. The judges' opinions were divided. The first instance agreed with the company: the tax authorities did not indicate in the requirement what specific explanations they wanted to see, so the organization was deprived of the opportunity to fulfill it.
However, the appeal, and then the cassation, considered the decision of their colleagues to be erroneous. The judges recognized the actions of the inspectors as lawful and not violating the rights of the company.
The courts have established that as of January 1, 2014, a provision appeared in the Tax Code of the Russian Federation giving tax authorities the right to demand an explanation of the amount of the declared loss. The Code also obliges to keep documents confirming its volume and the amount by which the tax base was reduced in each tax period, during the entire period of using the right to adjust the base by the amount of the loss.
If tax authorities doubt that a company has paid taxes correctly, they are obliged to request additional information, documents and information from it in order to exclude a tax violation.
If a loss is declared, the company must be ready to explain the reasons for its occurrence, as well as justify its size.
Resolution of the Arbitration Court of the Moscow District dated April 12, 2017 No. F05-3940/2017.
Editor's note:
Thus, it is pointless to challenge in court the legality of the request to explain the loss.
The explanations must list all the circumstances that led to a negative tax result. There must also be a “primary” document justifying the amount of this loss.
In the case of a camera room, controllers may require explanations (documents) in limited cases specified in Art. 88 Tax Code of the Russian Federation. Let's list the main ones.
The declaration revealed: | What will be required: |
- errors; | — explanations or “clarification”; |
— contradictions between the declaration data and information from the documents received or available to the inspectorate; | — explanations or “clarifications,” as well as documents confirming the accuracy of the information in the declaration (Resolution of the Presidium of the Supreme Arbitration Court of March 15, 2012 No. 14951/11); |
- information that contradicts other information from the same declaration or from a declaration (invoice journal) submitted by another person | — explanations and any documents (invoices, primary statements, etc.) related to transactions in the information about which contradictions were identified (letter of the Federal Tax Service of the Russian Federation dated November 6, 2015 No. ED-4-15/19395) |
The Federal Tax Service is represented by: | What will be required: |
— loss-making declaration; | — explanations justifying the amount of loss; |
— “clarification”, in which the tax payable is declared in a smaller amount than in the previously submitted declaration; | — explanations justifying the reduction of tax payable; |
— a declaration to which the required supporting documents are not attached; | — documents that the company must attach, for example, to confirm the zero VAT rate; |
— a declaration with the benefits stated in it; | - explanations and documents confirming the preferential right, in particular, the possibility of requesting documents extends to those listed in Art. 149 of the Tax Code of the Russian Federation, operations that by their nature correspond to the concept of a tax benefit (for example, paragraphs 1, 2, 14, paragraph 3 of Article 149 of the Tax Code of the Russian Federation, Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated May 30, 2014 No. 33); |
- a declaration in which VAT is claimed for refund | — documents confirming the legality of deductions |
Tax reporting must be submitted on time and compiled without errors: this axiom is firmly known to both novice entrepreneurs and experienced “bisons”.
To ensure that tax laws are strictly observed, every document submitted to the tax office is automatically checked. This mandatory verification of submitted reports is called office.
All firms, organizations and private entrepreneurs are constantly subject to this type of tax control: it is not surprising that a large number of questions arise about this process and its consequences. This article will try to answer many of them.
Classification of desk checks:
Strictly according to the law
Tax control, one of the forms of which is a desk audit, is based on the provisions of the Tax Code of the Russian Federation. The legislative basis for the various aspects of this procedure are contained in the following paragraphs and articles of the Tax Code:
- provision on tax control – clause 1 of article 82, clause 1 of art. 87 NK;
- the purposes of the desk audit – clause 2 of Article 87;
- what initiates such a check – clause 2. Art. 88;
- about the deadlines associated with the “camera room” procedure – clause 2 of Art. 6.1, paragraph 2 of Article 88;
- on the specifics of giving explanations based on the results of an inspection – clause 1 of Article 31;
- on identifying errors in reporting that need to be corrected – clause 3 of Article 88;
- on verification of the updated declaration – clause 9.1 of Art. 88;
- on the report based on the results of the inspection - clause 1 of Art. 100.
FOR YOUR INFORMATION! The provisions regulating the responsibility of the manager for failure to appear at the tax office when called to give explanations are contained not in the Tax Code, but in the Code of Administrative Offenses of the Russian Federation (Part 1 of Article 19.4).
What and how are they checked?
Each document that an entrepreneur submits to the INFS - calculations, declarations, VAT and personal income tax reporting, etc. - is subject to desk verification.
NOTE! There is no warning about this form of control; you do not need to obtain special permission from either the entrepreneur or the head of the tax office. This is a “camera chamber” - routine, but inevitable.
The check is performed automatically. All your tax reporting is entered into the database. When new information arrives, the indicators are automatically verified:
- with similar indicators for other periods;
- with indicators of the same time period, but for different fees;
- with accounting reports.
The calculated ratios should approximately correspond to the control ones, which the Federal Tax Service does not keep secret. All control tax ratios are listed on the Federal Tax Service website in the sections “For Legal Entities” and “Individual Entrepreneurs”, specifically. In the headings for this or that tax.
IMPORTANT! Before sending any reports to the tax authorities, the taxpayer can first check the control ratios of the indicators himself, using a special option that is available in many computer accounting programs.
All stages are clearly depicted in the diagram below: 
Fixed the bug before it was found?
If an entrepreneur has filed an updated declaration before the tax office has completed the verification of the previously submitted version, then the verification of the primary reporting is stopped, and the “clarification” is checked instead. Tax inspectors do not have the right to subject the same document to a desk audit twice.
Desk audit results
If the “camera examination” was completed successfully, and your reporting did not raise any questions from the tax authorities, you will not be sent any special notifications. Since the data you provided does not contradict what is available at the tax office, you can continue to work calmly - until the next report and the next desk audit.
In what cases is it necessary to write an explanatory note?
If the automated check reveals a number of inconsistencies, the tax authorities will demand an explanation from the entrepreneur. This can happen in the following cases:
- the declaration contains contradictions with other information. Which the Federal Tax Service has;
- the income tax return shows the tax loss;
- the updated declaration contains a lower tax amount than the primary version;
- certain benefits are prescribed;
- taxes relate to the use of natural resources;
- the reporting states VAT refund.
All these points will need to be explained, about which the entrepreneur will be notified by the tax authorities in one of the following ways:
- in person (the request is presented against signature);
- by registered mail;
- by email.
NOTE! If you received a request in electronic form, you must confirm its receipt within 6 days. Otherwise, in another ten days you risk finding yourself with a blocked current account.
After receiving the request, you have 5 days to prepare and provide explanations in any form. An entrepreneur can:
- Submit an updated declaration, but it is awaiting a new audit.
- Provide explanations in writing (for some taxes, the Federal Tax Service recommends certain forms, but the entrepreneur is not obliged to use them exclusively).
- If you are summoned, you must appear at the tax office and give an explanation in person. If you fail to appear, management risks a fine of 2-4 thousand rubles. for failure to comply with the requirements of the tax authority.
What does the tax office have the right to do?
If violations are revealed during a desk audit, along with receiving explanations from the taxpayer, tax officials may take a number of additional measures:
- checking the entrepreneur’s documents;
- requesting documents and information from partners and competitors (Article 93.1 of the Tax Code of the Russian Federation);
- interviewing witnesses (Article 90);
- examination, possibly with the involvement of third-party experts – Article 95;
- inspection of premises, property, objects, etc. – only with the voluntary consent of the taxpayer (Article 91-92).
IMPORTANT INFORMATION! During these additional measures, tax officials should look for confirmation of identified violations, and not search for new ones.
The result of the desk audit
After all the verification procedures, there can be only 2 options for the adopted tax decision:
- registration of an offense with prosecution (most often, this is a fine issued);
- refusal to prosecute (instead of a fine, the arrears subject to compensation and the amount of the penalty may be indicated).
If you do not agree with the desk audit
If the taxpayer does not agree with the violations identified during the desk audit or with the proposed measures to eliminate them, he can submit his objections to the audit report after its delivery. The head of the tax authorities must, based on them, make a decision on the responsibility of the entrepreneur. To do this, he must further consider the results of the audit.
FOR YOUR INFORMATION! The taxpayer must be notified of the review of the audit materials, otherwise the decision may be appealed.
Legal deadlines for all cameral procedures
The table shows the time intervals defined by law for various actions during a desk audit.
| № | Action of the tax authority or taxpayer | Time frame |
|---|---|---|
| 1 | Beginning of desk audit | Immediately after submitting the document |
| 2 | Completion of desk audit | Maximum 3 months |
| 3 | The need to respond to identified violations (send an updated declaration or provide explanations) | 5 working days from receipt of the request |
| 4 | Submission of documents requested during the inspection | 10 days after request |
| 5 | Drawing up a report on the results of the inspection | 10 days after completion |
| 6 | Delivery of the act to the inspected entrepreneur | 5 days after preparation |
| 7 | Expressing disagreement with the desk inspection report | 15 days from the date of receipt of the act |
| 8 | Making a decision taking into account the above objections | 10 days after submission |
| 9 | Extension of the deadline for making a decision | No more than 1 month |
| 10 | Delivery of the decision to the taxpayer | Within 5 days after issuance |
| 11 | Entry into force of the decision to prosecute as a result of the “camera chamber” | 10 days from the date of delivery |